May 11, 2021

Paul Osborne
(Australian Associated Press)

 

A SUMMARY OF THE 2021 FEDERAL BUDGET

ECONOMY

* Budget deficit of $106.6 billion in 2021/22

* Deficit narrows to $99.3 billion in 2022/23, $79.5 billion in 2023/24 and $57 billion in 2024/25

* Commonwealth net debt to rise to $617.5 billion in 2021/22 before hitting $980.6 billion in 2024/25

* Economic growth to rise by 4.25 per cent in 2021/22, before easing to 2.5 per cent in 2022/23

* Unemployment rate of 5 per cent in 2021/22, before falling to 4.75 per cent the following year

* Inflation as measured by CPI to be 1.75 per cent in 2021/22

 

TAXATION

* Extra $7.8 billion in tax cuts for low and middle income earners, worth $1080 for individuals or $2160 for dual-income couples

* $25.1 billion of announced personal tax cuts will flow to households in 2021/22

 

BUSINESS

* Extension of temporary full expensing for an extra year to June 30, 2023.

* Temporary loss carryback extended to include the 2022/23 income year

* Both measures will deliver an extra $20.7 billion in tax relief for businesses over four years

* Small businesses to get an easier path to pause or modify tax office debt recovery action through the Administrative Appeals Tribunal

* $16 billion in tax cuts for small and medium sized businesses by 2023/24

* $1.2 billion aviation and tourism sector package

* $1.5 billion modern manufacturing strategy

 

HOUSING

* Extension of the HomeBuilder construction commencement period

* Further 10,000 places under the New Home Guarantee for first home buyers

* From July 1, 10,000 guarantees will be made available over four years for single parents to build a new home or buy an existing home with a deposit of as little as two per cent

* From July 1, 2022, First Home Super Saver Scheme voluntary contributions maximum amount will rise from $30,000 to $50,000

 

INFRASTRUCTURE

* Extra $15.2 billion in infrastructure spending over the decade

* $215.4 million to support investment in dispatchable power generation

* $1.2 billion over 10 years for low-emissions technology

 

EDUCATION

* $2 billion over four years for early childhood education, supporting access to at least 15 hours a week for all children in the year before school

* $289 billion in recurrent funding for schools over the decade

* 5000 extra short-course places at non-university higher education providers in 2021

 

THE BUSH

* $3.5 billion National Water Grid Fund

* $414.5 million biosecurity package

* $172.5 million to be allocated out of the Future Drought Fund for projects, such as climate and soil data gathering

* $250 million extra from the Building Better Regions Fund

* Reinsurance pool for northern Australia backed by $10 billion government guarantee

* $189.6 million for ‘Our North, Our Future’ five year plan

* National Recovery and Resilience Agency and Australian Climate Service to be set up, in response to bushfires royal commission

 

DIGITAL ECONOMY

* $100 million to build digital skills

* Digital games developers to get 30 per cent refundable tax offset

* $200 million to overhaul the MyGov online system

 

WOMEN

* $1.1 billion for supporting victims of violence, including financial and legal help and emergency accommodation

* $20.5 million to implement the Respect@Work report by Sex Discrimination Commissioner Kate Jenkins

* $26.2 million for online safety initiatives

* $1.7 billion extra for child care, increasing the subsidy for the second and subsequent child

* Removal of the $450 per month superannuation threshold

* $38.3 million women’s leadership program

* Subsidised treatments for certain types of breast cancer

 

HEALTH

* $2.3 billion for improved and expanded mental health care and suicide prevention

* Mental health plan includes new adult mental health centres, Medicare listings, suicide prevention services and workforce improvements

* Further $1.9 billion investment in the vaccine rollout, expanding the number of doses on order to 170 million

* Investigating local production of mRNA vaccines

* Patent box to be introduced, giving a tax break for income derived from Australian patents in the medical and biotechnology sectors

 

AGED CARE

* $17.7 billion to fund aged care reforms

* New funding model to start in October 2022

* 80,000 extra home care packages

* Extra 33,800 training places to boost the aged care workforce

 

INDIGENOUS

* $243.6 million Indigenous budget, including skills and jobs programs and improved access to government services in remote areas

 

VETERANS

* Extra $460.4 million for veterans, including a royal commission into defence and veteran suicide

 

ENVIRONMENT

* $29.3 million initial response to reform of environmental protection laws

 

DISABILITY

* Extra $13.2 billion for the National Disability Insurance Scheme over four years

 

RETIREES

* Extension of pension loans scheme, allowing a single person to receive lump sum payments of up to $12,385 a year or $18,670 for a couple

* Repeal work test to allow Australians aged 67 to 74 more flexibility to contribute to their superannuation

* Minimum age of the downsizer superannuation contribution to be lowered from 65 to 60, allowing a post-tax contribution of $300,000 per person when they sell the family home

 

SECURITY

* $1.3 billion over 10 years for ASIO

* $467.7 million to bolster domestic detention capabilities

* $747 million to upgrade four military training areas in the Northern Territory